You can’t say I didn’t warn you.
In August I wrote the following:
On that note, our proprietary Crash Trigger recorded a signal yesterday morning.
This means the odds of a market meltdown are higher than in years.
That meltdown is now here. And it’s not over by a long shot.
Think of this meltdown as stocks playing “catch up” to economic realities.
Those are the economic realities of a slowing global economy, a deflating housing bubble as a result of Fed rate hikes, and a trade war with China.
Each of these realities had an asset class warning about what was to come. Those asset classes were Copper, Homebuilders, and China’s stock market.
ALL of these suggest stocks are going lower. It’s no longer a question of IF stocks will continue to drop, but a question of how far they will drop.
Back in 2015 I sensed that the financial system was moving toward a multi-year period of increased volatility.